| x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE |
|---|------------------------------------------------------|

| PART I   |   |                                                                                                                          | Page     |
|----------|--------|-------------------------------------------------------------------------------------------------------------------------------|----------|
| Item 1.  |   | Business                                                                                                                      | 1        |
| Item 1A. |   | Risk Factors                                                                                                                  | 2        |
| Item 1B. |   | Unresolved Staff Comments                                                                                                     | 5        |
| Item 2.  |   | Properties                                                                                                                    | 5        |
| Item 3.  |   | Legal Proceedings                                                                                                             | 5        |
|     |   |                                                                                                                          |     |
|     |   | Executive Officers of the Registrant                                                                                          | 5        |
| PART II  |   |                                                                                                                          |     |
| Item 5.  |   | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity  Securities | 6        |
|     |   |                                                                                                                          |     |
|     |   | Performance Graph                                                                                                             | 7        |
| Item 6.  |   | Selected Financial Data                                                                                                       | 8        |
| Item 7.  |   | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                   | 8        |
| Item 7A. |   | Quantitative and Qualitative Disclosures About Market Risk                                                                    | 13       |
| Item 8.  |   | Financial Statements and Supplementary Data                                                                                   | 14       |
| Item 9.  |   | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                                          | 40       |
| Item 9A. |   | Controls and Procedures                                                                                                       | 41       |
| Item 9B. |   | Other Information                                                                                                             | 41       |
| PART III |   |                                                                                                                          |     |
| Item 10. |   | Directors, Executive Officers and Corporate Governance                                                                        | 41       |
| Item 11. |   | Executive Compensation                                                                                                        | 42       |
| Item 12. |   | Security Ownership of Certain Beneficial Owners & Management and Related Stockholder Matters                              | 42  |
| Item 13. |   | Certain Relationships and Related Transactions and Director Independence                                                      | 43       |
| Item 14. |   | Principal Accounting Fees and Services                                                                                        | 43       |
| PART IV  |   |                                                                                                                          |     |
| Item 15. |   | Exhibits and Financial Statement Schedules                                                                                    | 43       |

| –   | Deterioration in regional and local economic and real estate market conditions, |
|---------------------|---------------------------------------------------------------------------------|

| –   | potential changes in supply of, or demand for rental properties similar to the Company’s, |
|---------------------|-------------------------------------------------------------------------------------------------|

| –   | competition for tenants and changes in rental rates, |
|---------------------|------------------------------------------------------|

| –   | concentration in a single real estate asset and class, |
|---------------------|--------------------------------------------------------|

| –   | difficulty in reletting properties on favorable terms or at all, |
|---------------------|------------------------------------------------------------------|

| –   | impairments in the Company’s ability to collect rent payments when due, |
|---------------------|-------------------------------------------------------------------------------|

| –   | the potential for uninsured casualty and other losses, |
|---------------------|--------------------------------------------------------|

| –   | the impact of present or future environmental legislation and compliance with environmental laws, |
|---------------------|---------------------------------------------------------------------------------------------------|

| –   | adverse changes in zoning laws and other regulations, |
|---------------------|-------------------------------------------------------|

| –   | changes in federal or state tax laws, and |
|---------------------|-------------------------------------------|

| –   | acts of terrorism and war. |
|---------------------|----------------------------|

| Name              |   | Age    |   | Title                                                             |
|-------------------|--------|--------|--------|-------------------------------------------------------------------|
|              |   |   |   |                                                              |
| Richard A. Bianco |   | 63     |   | Chairman, President and Chief Executive Officer                   |
|              |   |   |   |                                                              |
| John P. Ferrara   |   | 49     |   | Vice President, Chief  Financial Officer and Controller |
|              |   |   |   |                                                              |
| Joseph R. Bianco  |   | 66     |   | Treasurer                                                         |
|              |   |   |   |                                                              |

| ITEM 5. | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES |
|---------|---------------------------------------------------------------------------------------------------------------------|

|           |   | 2010   |                                                                                                                                                                                                                   | 2009   |   |   |
|----------------|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
|           |   | High   |                                     Low |   | High   |   |                 Low |   |
| First Quarter  |   | $      | 0.19                                                                                                                                                                                                                   |   | $      | 0.12   |   | $ | 0.19 |   | $ | 0.11 |   |   |
| Second Quarter |   |   | 0.17                                                                                                                                                                                                                   |   |   | 0.13   |   |   | 0.11 |   |   | 0.09 |   |   |
| Third Quarter  |   |   | 0.19                                                                                                                                                                                                                   |   |   | 0.14   |   |   | 0.20 |   |   | 0.10 |   |   |
| Fourth Quarter |   |   | 0.20                                                                                                                                                                                                                   |   |   | 0.16   |   |   | 0.18 |   |   | 0.13 |   |   |

|                                   |   | Total Number of Shares Purchased |   | Average Price Paid per Share (including Broker Commissions) |   | Total Number Shares Purchased as Part of Publicly Announced Plans |   | Maximum Number Shares that may yet be Purchased under the Plan |      |
|----------------------------------------|--------|----------------------------------|--------|-------------------------------------------------------------|--------|-------------------------------------------------------------------|--------|----------------------------------------------------------------|-----------|
|                                   |   |                             |   |                                                        |   |                                                              |   |                                                           |      |   |   |   |   |
| Beginning balance January 1, 2010      |   |                             | -      |                                                        |   | -                                                                 |   |                                                           | 3,205,109 |   |   | 6,791,891 |   |
| January 1, 2010 - January 31, 2010     |   |                             | -      |                                                        |   | -                                                                 |   |                                                           | 3,205,109 |   |   | 6,791,891 |   |
| February 1, 2010 - February 28, 2010   |   |                             | -      |                                                        |   | -                                                                 |   |                                                           | 3,205,109 |   |   | 6,791,891 |   |
| March 1, 2010 - March 31, 2010         |   |                             | -      |                                                        |   | -                                                                 |   |                                                           | 3,205,109 |   |   | 6,791,891 |   |
| April 1, 2010 - April 30, 2010         |   |                             | -      |                                                        |   | -                                                                 |   |                                                           | 3,205,109 |   |   | 6,791,891 |   |
| May 1, 2010 - May 31, 2010             |   |                             | -      |                                                        |   | -                                                                 |   |                                                           | 3,205,109 |   |   | 6,791,891 |   |
| June 1, 2010 - June 30, 2010           |   |                             | -      |                                                        |   | -                                                                 |   |                                                           | 3,205,109 |   |   | 6,791,891 |   |
| July 1, 2010 - July 31, 2010           |   |                             | -      |                                                        |   | -                                                                 |   |                                                           | 3,205,109 |   |   | 6,791,891 |   |
| August 1, 2010 - August 31, 2010       |   |                             | -      |                                                        |   | -                                                                 |   |                                                           | 3,205,109 |   |   | 6,791,891 |   |
| September 1, 2010 - September 30, 2010 |   |                             | -      |                                                        |   | -                                                                 |   |                                                           | 3,205,109 |   |   | 6,791,891 |   |
| October 1, 2010 - October 31, 2010     |   |                             | -      |                                                        |   | -                                                                 |   |                                                           | 3,205,109 |   |   | 6,791,891 |   |
| November 1, 2010 - November 30, 2010   |   |                             | -      |                                                        |   | -                                                                 |   |                                                           | 3,205,109 |   |   | 6,791,891 |   |
| December 1, 2010 - December 31, 2010   |   |                             | -      |                                                        |   | -                                                                 |   |                                                           | 3,205,109 |   |   | 6,791,891 |   |
| Total                                  |   |                             | -      |                                                        |   |                                                              |   |                                                           |      |   |   |   |   |

|                        |   |  December 31 |   |
|-----------------------------|--------|-------------------|--------|
| Company/Index               |   |  2005        |   |  2006 |   |  2007 |   |  2008 |   |  2009 |   |  2010 |   |
| AmBase Corporation          |   | 100.00            |   | 95.24 |   | 76.19 |   | 30.48 |   | 26.67 |   | 30.48 |   |
| S&P 500 Index           |   | 100.00            |   | 115.79 |   | 122.16 |   | 76.96 |   | 97.33 |   | 111.99 |   |
| S&P 500 Financial Index |   | 100.00            |   | 119.19 |   | 96.99 |   | 43.34 |   | 50.80 |   | 56.96 |   |

| (in thousands, except per share data) |   | Years ended December 31, |       |
|---------------------------------------|--------|--------------------------|------------|
|                                  |   |                     |  2010 |   |   |  2009 |   |   |  2008 |   |   |  2007 |   |   |  2006 |   |
|                                  |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating revenue                     |   | $                        | -          |   | $ | - |   | $ | - |   | $ | - |   | $ | 92 |   |
| Interest income                       |   |                     | 22         |   |   | 50 |   |   | 353 |   |   | 1,305 |   |   | 1,846 |   |
|                                  |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                     |   | $                        | (1,960     | ) | $ | (2,411 | ) | $ | (4,431 | ) | $ | (3,936 | ) | $ | (5,463 | ) |
| Per share data:                       |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) - Basic             |   | $                        | (0.04      | ) | $ | (0.06 | ) | $ | (0.10 | ) | $ | (0.09 | ) | $ | (0.12 | ) |
| Dividends                             |   |                     | -          |   |   | - |   |   | - |   |   | - |   |   | - |   |
| Total assets                          |   | $                        | 11,762     |   | $ | 13,801 |   | $ | 16,241 |   | $ | 21,559 |   | $ | 42,148 |   |
| Total stockholders’ equity      |   |                     | 11,540     |   |   | 13,500 |   |   | 15,928 |   |   | 20,578 |   |   | 24,667 |   |

| ITEM 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
|---------|---------------------------------------------------------------------------------------------|

| (in thousands)   |   | Payments Due by Period |        |
|------------------|--------|------------------------|-------------|
|             |   |                   |  Total |   |   |  Less Than One Year |   |   |  One to Three Years |   |   |  Three to Five Years |   |   |  More than Five Years |   |
|             |   |                   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating leases |   | $                      | 18          |   | $ | 6 |   | $ | 12 |   | $ | - |   | $ | - |   |
| Total            |   | $                      | 18          |   | $ | 6 |   | $ | 12 |   | $ | - |   | $ | - |   |

| ($ in thousands)               |   | 2010           |   | 2009       |   |
|--------------------------------|--------|----------------|--------|------------|--------|
|                           |   | Carrying Value |   | Fair Value |   | Carrying Value |   | Fair Value |   |
|                           |   |           |   |       |   |   |   |   |   |   |   |   |   |
| U.S. Treasury Bills            |   | $              | 8,200  |       | $      | 8,199 |   | $ | 9,996 |   | $ | 10,000 |   |
| Weighted average interest rate |   |           | 0.09   | %          |   |   |   |   | 0.27 | % |   |   |   |

|                                                             |    | 2010   |    |   | 2009   |   | 2008   |   |
|------------------------------------------------------------------|---------|--------|---------|--------|--------|--------|--------|--------|
| Operating expenses:                                              |    |   |    |   |   |   |   |   |   |   |
| Compensation and benefits                                        | $       | 1,393  |    | $      |   | 1,508  |   | $      | 1,533 |   |
| Professional and outside services                                |    | 272    |    |   |   | 627    |   |   | 3,286 |   |
| Property operating and maintenance                               |    | 111    |    |   |   | 106    |   |   | 116 |   |
| Depreciation                                                     |    | 49     |    |   |   | 51     |   |   | 51 |   |
| Insurance                                                        |    | 38     |    |   |   | 59     |   |   | 73 |   |
| Other operating                                                  |    | 92     |    |   |   | 104    |   |   | 132 |   |
|                                                             |    | 1,955  |    |   |   | 2,455  |   |   | 5,191 |   |
| Operating loss                                                   |    | (1,955 | )       |   |   | (2,455 | )      |   | (5,191 | ) |
|                                                             |    |   |    |   |   |   |   |   |   |   |
| Interest income                                                  |    | 22     |    |   |   | 50     |   |   | 353 |   |
| Realized gains on sales of investment securities                 |    | 31     |    |   |   | -      |   |   | - |   |
| Other income                                                     |    | -      |    |   |   | 50     |   |   | 247 |   |
| Loss before income taxes                                         |    | (1,902 | )       |   |   | (2,355 | )      |   | (4,591 | ) |
|                                                             |    |   |    |   |   |   |   |   |   |   |
| Income tax (expense) benefit                                     |    | (58    | )       |   |   | (56    | )      |   | 160 |   |
| Net loss                                                         | $       | (1,960 | )       | $      |   | (2,411 | )      | $      | (4,431 | ) |
|                                                             |    |   |    |   |   |   |   |   |   |   |
| Per share data:                                                  |    |   |    |   |   |   |   |   |   |   |
| Net loss attributable to common stockholders - basic             |  $ | (0.04  |  ) | $      |   | (0.06  | )      | $      | (0.10 | ) |
| Net loss attributable to common stockholders - assuming dilution |  $ | (0.04  |  ) | $      |   | (0.06  | )      | $      | (0.10 | ) |
|                                                             |    |   |    |   |   |   |   |   |   |   |
| Weighted average common shares outstanding:                      |    |   |    |   |   |   |   |   |   |   |
| Basic                                                            |    | 43,075 |    |   |   | 43,152 |   |   | 43,571 |   |
| Assuming dilution                                                |    | 43,075 |    |   |   | 43,152 |   |   | 43,571 |   |
|                                                             |    |   |    |   |   |   |   |   |   |   |

| Assets:                                                                                                               |   |    |  2010   |   |    |  2009   |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|---------|--------------|--------|---------|--------------|--------|
| Cash and cash equivalents                                                                                             |   | $       | 1,334        |   | $       | 1,715        |   |
| Held to maturity investments (market value $8,199 in 2010 and $10,000 in 2009)                                        |   |    | 8,200        |   |    | 9,996        |   |
|                                                                                                                  |   |    |         |   |    |         |   |
| Real estate owned:                                                                                                    |   |    |         |   |    |         |   |
|   Land                                                                                                      |   |    | 554          |   |    | 554          |   |
|   Buildings                                                                                                 |   |    | 1,900        |   |    | 1,900        |   |
|                                                                                                                  |   |    | 2,454        |   |    | 2,454        |   |
|   Accumulated depreciation                                                                                  |   |    | (485         | )      |    | (436         | )      |
|                                                                                                                  |   |    |         |   |    |         |   |
| Real estate owned, net                                                                                                |   |    | 1,969        |   |    | 2,018        |   |
|                                                                                                                  |   |    |         |   |    |         |   |
| Other assets                                                                                                          |   |    | 259          |   |    | 72           |   |
| Total assets                                                                                                          |   |  $ |  11,762 |   |  $ |  13,801 |   |
|                                                                                                                  |   |    |         |   |    |         |   |
| Liabilities and Stockholders’ Equity:                                                                           |   |    |         |   |    |         |   |
| Liabilities:                                                                                                          |   |    |         |   |    |         |   |
| Accounts payable and accrued liabilities                                                                              |   | $       | 220          |   | $       | 289          |   |
| Other liabilities                                                                                                     |   |    | 2            |   |    | 12           |   |
|                                                                                                                  |   |    |         |   |    |         |   |
| Total liabilities                                                                                                     |   |    | 222          |   |    | 301          |   |
|                                                                                                                  |   |    |         |   |    |         |   |
| Commitments and contingencies (Note 10)                                                                               |   |    |         |   |    |         |   |
|                                                                                                                  |   |    |         |   |    |         |   |
| Stockholders’ equity:                                                                                           |   |    |         |   |    |         |   |
| Common stock ($0.01 par value, 200,000,000 authorized, 46,410,007 issued and 43,075,410 outstanding in 2010 and 2009) |   |    | 464          |   |    | 464          |   |
| Additional paid-in capital                                                                                            |   |    | 548,044      |   |    | 548,044      |   |
| Accumulated deficit                                                                                                   |   |    | (534,859     | )      |    | (532,899     | )      |
| Treasury stock, at cost - 3,334,597 shares                                                                            |   |    | (2,109       | )      |    | (2,109       | )      |
| Total stockholders’ equity                                                                                      |   |    | 11,540       |   |    | 13,500       |   |
|                                                                                                                  |   |    |         |   |    |         |   |
| Total liabilities and stockholders’ equity                                                                      |   |  $ |  11,762 |   |  $ |  13,801 |   |

| (in thousands)           |    |    Common stock |   |   |   | Additional paid-in capital |   |   | Accumulated deficit |    |   | Treasury stock |   |   | Total  |   |
|--------------------------|---------|--------------------------------|--------|--------|--------|----------------------------|--------|--------|---------------------|---------|--------|----------------|--------|--------|--------|--------|
| December 31, 2007        |  $ |  464                      |   |   | $      | 548,044                    |   | $      | (526,057            |  ) | $      | (1,873         | )      | $      | 20,578 |   |
|                     |    |                           |   |   |   |                       |   |   |                |    |   |           |   |   |   |   |
| Net loss                 |    | -                              |   |   |   | -                          |   |   | (4,431              | )       |   | -              |   |   | (4,431 | )      |
| Common stock repurchased |    | -                              |   |   |   | -                          |   |   | -                   |    |   | (219           | )      |   | (219   | )      |
| December 31, 2008        |    | 464                            |   |   |   | 548,044                    |   |   | (530,488            | )       |   | (2,092         | )      |   | 15,928 |   |
|                     |    |                           |   |   |   |                       |   |   |                |    |   |           |   |   |   |   |
| Net loss                 |    | -                              |   |   |   | -                          |   |   | (2,411              | )       |   | -              |   |   | (2,411 | )      |
| Common stock repurchased |    | -                              |   |   |   | -                          |   |   | -                   |    |   | (17            | )      |   | (17    | )      |
| December 31, 2009        |    | 464                            |   |   |   | 548,044                    |   |   | (532,899            | )       |   | (2,109         | )      |   | 13,500 |   |
|                     |    |                           |   |   |   |                       |   |   |                |    |   |           |   |   |   |   |
| Net loss                 |    | -                              |   |   |   | -                          |   |   | (1,960              | )       |   | -              |   |   | (1,960 | )      |
| Common stock repurchased |    | -                              |   |   |   | -                          |   |   | -                   |    |   | -              |   |   | -      |   |
| December 31, 2010        | $       | 464                            |   |   | $      | 548,044                    |   | $      | (534,859            | )       | $      | (2,109         | )      | $      | 11,540 |   |

| (in thousands)                                                             |    | 2010          |    |   | 2009          |   |   | 2008          |   |
|----------------------------------------------------------------------------|---------|---------------|---------|--------|---------------|--------|--------|---------------|--------|
|                                                                       |    |          |    |   |          |   |   |          |   |
| Cash flows from operating activities:                                      |    |          |    |   |          |   |   |          |   |
| Net loss                                                                   | $       | (1,960        | )       | $      | (2,411        | )      | $      | (4,431        | )      |
| Adjustments to reconcile net loss to net cash used by operating activities |    |          |    |   |          |   |   |          |   |
| Depreciation and amortization                                              |    | 49            |    |   | 51            |   |   | 51            |   |
| Realized gains on sales of investment securities                           |    | (31           | )       |   | -             |   |   | -             |   |
| Changes in other assets and liabilities:                                   |    |          |    |   |          |   |   |          |   |
| Accrued interest receivable in investment securities                       |    |  9       |    |   |  (10     | )      |   |  140     |   |
| Other assets                                                               |    | 113           |    |   | 33            |   |   | 127           |   |
| Accounts payable and accrued liabilities                                   |    | (69           | )       |   | (15           | )      |   | (658          | )      |
| Other liabilities                                                          |    | (10           | )       |   | 3             |   |   | (10           | )      |
| Net cash used by operating activities                                      |    | (1,899        | )       |   | (2,349        | )      |   | (4,781        | )      |
| Cash flows from investing activities:                                      |    |          |    |   |          |   |   |          |   |
| Maturities of investment securities - held to maturity                     |    |  45,376  |    |   |  32,786  |   |   |  37,036  |   |
| Purchases of investment securities - held to maturity                      |    |  (43,589 |  ) |   |  (31,372 | )      |   |  (32,263 | )      |
| Purchases of investment securities                                         |    | 977           |    |   | -             |   |   | -             |   |
| Sales of investment securities                                             |    | (946          | )       |   | -             |   |   | -             |   |
| Investment in real estate limited partnership                              |    | (300          | )       |   | -             |   |   | -             |   |
| Net cash provided by investing activities                                  |    |  1,518   |    |   |  1,414   |   |   |  4,773   |   |
| Cash flows from financing activities:                                      |    |          |    |   |          |   |   |          |   |
| Common stock repurchased                                                   |    | -             |    |   | (17           | )      |   | (219          | )      |
| Net cash used by financing activities                                      |    | -             |    |   | (17           | )      |   | (219          | )      |
|                                                                       |    |          |    |   |          |   |   |          |   |
| Net change in cash and cash equivalents                                    |    | (381          | )       |   | (952          | )      |   | (227          | )      |
| Cash and cash equivalents at beginning of year                             |    |  1,715   |    |   |  2,667   |   |   |  2,894   |   |
| Cash and cash equivalents at end of year                                   |  $ |  1,334   |    | $      |  1,715   |   | $      |  2,667   |   |
|                                                                       |    |          |    |   |          |   |   |          |   |
| Supplemental cash flow disclosure:                                         |    |          |    |   |          |   |   |          |   |
| Income taxes paid                                                          | $       | 110           |    | $      | 2             |   | $      | 1             |   |
|                                                                       |    |          |    |   |          |   |   |          |   |

|                            | 2010    |                             | 2009   |   |
|---------------------------------|---------|----------------------------------|--------|--------|
| (in thousands)                  |    |    Carrying Value |   |   | Cost or Amortized Cost |   |   |  Fair Value |   |   |  Carrying Value |   |   |  Cost or Amortized Cost |   |   |  Fair Value |   |
| Held to Maturity:               |    |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   U.S. Treasury Bills | $       | 8,200                            |   | $      | 8,200 |   | $ | 8,199 |   | $ | 9,996 |   | $ | 9,996 |   | $ | 10,000 |   |
|                            |  $ |  8,200                      |   | $      | 8,200 |   | $ | 8,199 |   | $ |  9,996 |   | $ | 9,996 |   | $ | 10,000 |   |

| Held to Maturity:            |   |   |  2010 |   |   |  2009 |   |
|------------------------------|--------|--------|------------|--------|--------|------------|--------|
| Gross unrealized (loss) gain |   | $      | (1         | )      | $      | 4          |   |

|              |   |  2010 |   |
|-------------------|--------|------------|--------|
| Net sale proceeds |   | $          | 977    |   |
| Cost basis        |   |       | (946   | ) |
| Realized gain     |   | $          | 31     |   |

|                                                         |   |  2010   |   |   |  2009   |   |   |  2008   |   |
|--------------------------------------------------------------|--------|--------------|--------|--------|--------------|--------|--------|--------------|--------|
| Net loss                                                     | $      | (1,960       | )      | $      | (2,411       | )      | $      | (4,431       | )      |
|                                                         |   |         |   |   |         |   |   |         |   |
| Weighted average common shares outstanding                   |   | 43,075       |   |   | 43,152       |   |   | 43,571       |   |
|                                                         |   |         |   |   |         |   |   |         |   |
| Effect of Dilutive Securities:                               |   |         |   |   |         |   |   |         |   |
| Assumed stock option exercise                                |   | -            |   |   | -            |   |   | -            |   |
| Weighted average common shares outstanding assuming dilution |   |  43,075 |   |   |  43,152 |   |   |  43,571 |   |
|                                                         |   |         |   |   |         |   |   |         |   |
| Net loss per common share:                                   |   |         |   |   |         |   |   |         |   |
| Basic                                                        | $      | (0.04        | )      | $      | (0.06        | )      | $      | (0.10        | )      |
| Assuming dilution                                            |   | (0.04        | )      |   | (0.06        | )      |   | (0.10        | )      |

|                         |   |  2010 |   |   |  2009 |   |   |  2008 |   |
|------------------------------|--------|------------|--------|--------|------------|--------|--------|------------|--------|
| Balance at beginning of year |   | 43,075,410 |   |   | 43,215,464 |   |   | 43,858,664 |   |
|                         |   |       |   |   |       |   |   |       |   |
| Common shares repurchased    |   | -          |   |   | (140,054   | )      |   | (643,200   | )      |
|                         |   |       |   |   |       |   |   |       |   |
| Balance at end of year       |   | 43,075,410 |   |   | 43,075,410 |   |   | 43,215,464 |   |

|                                      |   |  2010 |   |   |  2009 |   |   |  2008 |   |
|-------------------------------------------|--------|------------|--------|--------|------------|--------|--------|------------|--------|
| Treasury shares                           |   | 3,334,597  |   |   | 3,334,597  |   |   | 3,194,543  |   |
|                                      |   |       |   |   |       |   |   |       |   |
| Aggregate dollar value of treasury shares | $      | 2,109,000  |   | $      | 2,109,000  |   | $      | 2,092,000  |   |
|                                      |   |       |   |   |       |   |   |       |   |
| Average cost per treasury share           | $      | 0.63       |   | $      | 0.63       |   | $      | 0.66       |   |

| (shares in thousands)            |   | 1993 Stock Incentive Plan |                      |
|----------------------------------|--------|---------------------------|---------------------------|
|                             |   |                      |  Shares Under Option |   |   |  Weighted Average Exercise Price |   |
| Outstanding at December 31, 2007 |   |                      | 876                       |   | $ | 0.93 |   |
| Expired                          |   |                      | (10                       | ) |   | 1.19 |   |
|                             |   |                      |                      |   |   |   |   |
| Outstanding at December 31, 2008 |   |                      | 866                       |   |   | 0.90 |   |
| Expired                          |   |                      | (15                       | ) |   | 2.56 |   |
|                             |   |                      |                      |   |   |   |   |
| Outstanding at December 31, 2009 |   |                      | 851                       |   |   | 0.87 |   |
| Expired                          |   |                      | (15                       | ) |   | 0.95 |   |
|                             |   |                      |                      |   |   |   |   |
| Outstanding at December 31, 2010 |   |                      | 836                       |   |   | 0.87 |   |
|                             |   |                      |                      |   |   |   |   |
| Options exercisable at:          |   |                      |                      |   |   |   |   |
| December 31, 2010                |   |                      | 836                       |   | $ | 0.87 |   |
| December 31, 2009                |   |                      | 851                       |   |   | 0.87 |   |
| December 31, 2008                |   |                      | 866                       |   |   | 0.90 |   |

|   |  (shares in thousands)                |   |   | Option Outstanding |   |   |                                                   | Options Exercisable |   |
|--------|--------------------------------------------|--------|--------|--------------------|--------|--------|--------------------------------------------------------|---------------------|--------|
|   |    Range of Exercise Prices |   |   | Shares             |   |   | Weighted Average Remaining Contractual Life (in years) |                |   | Weighted Average Exercise Price |   |   |   | Shares |   |   | Weighted Average Exercise Price |   |
|   |  $0.60 to $0.81                       |   |   | 500                |   |   | 3.37                                                   |                |   | $0.72 |   |   |   | 500 |   |   | $0.72 |   |
|   | $1.09                                      |   |   | 336                |   |   | 1.00                                                   |                |   | 1.09 |   |   |   | 336 |   |   | 1.09 |   |
|   | Total                                      |   |   | 836                |   |   |                                                   |                |   |   |   |   |   | 836 |   |   | 0.87 |   |

| (in thousands)                         |   | 2010   |   | 2009   |   | 2008   |   |   |
|----------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                   |   |   |   |   |   |   |   |   |   |   |
| Income tax (expense) benefit - current |   | $      | (58    | )      | $      | (56    | )      | $      | 160 |   |
| Total                                  |   | $      | (58    | )      | $      | (56    | )      | $      | 160 |   |

| (in thousands)                                  |   | 2010   |   | 2009   |   | 2008   |   |   |
|-------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                            |   |   |   |   |   |   |   |   |   |   |
| Loss before income taxes                        |   | $      | (1,902 | )      | $      | (2,355 | )      | $      | (4,591 | ) |
|                                            |   |   |   |   |   |   |   |   |   |   |
| Tax (expense) benefit :                         |   |   |   |   |   |   |   |   |   |   |
| Tax at statutory federal rate                   |   | $      | 666    |   | $      | 824    |   | $      | 1,607 |   |
| Accounting loss benefit not recognized          |   |   | (666   | )      |   | (824   | )      |   | (1,607 | ) |
| State income taxes                              |   |   | (58    | )      |   | (56    | )      |   | - |   |
| Adjustment to prior year estimated tax accruals |   |   | -      |   |   | -      |   |   | 160 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |
| Income tax (expense) benefit                    |   | $      | (58    | )      | $      | (56    | )      | $      | 160 |   |

| TaxYear |   |   | Amount     |   |
|---------|--------|--------|------------|--------|
| 2012    |   | $      | 1,100,000  |   |
| 2018    |   |   | 5,400,000  |   |
| 2019    |   |   | 4,000,000  |   |
| 2020    |   |   | 2,600,000  |   |
| 2021    |   |   | 4,000,000  |   |
| 2022    |   |   | 3,200,000  |   |
| 2023    |   |   | 1,800,000  |   |
| 2024    |   |   | 700,000    |   |
| 2026    |   |   | 2,800,000  |   |
| 2027    |   |   | 3,100,000  |   |
| 2028    |   |   | 4,600,000  |   |
| 2029    |   |   | 2,400,000  |   |
|    |   | $      | 35,700,000 |   |

| (in thousands, except per share data) |   |   |  First  Quarter |   |   |  Second Quarter |   |   |  Third Quarter |   |   |  Fourth Quarter |   |   |  Full Year |   |
|---------------------------------------|--------|--------|--------------------------------|--------|--------|----------------------|--------|--------|---------------------|--------|--------|----------------------|--------|--------|-----------------|--------|
| 2010:                                 |   |   |                           |   |   |                 |   |   |                |   |   |                 |   |   |            |   |
| Operating expenses                    |   | $      | 549                            |   | $      | 548                  |   | $      | 428                 |   | $      | 430                  |   | $      | 1,955           |   |
| Operating loss                        |   |   | (549                           | )      |   | (548                 | )      |   | (428                | )      |   | (430                 | )      |   | (1,955          | )      |
| Net loss                              |   | $      | (545                           | )      | $      | (546                 | )      | $      | (418                | )      | $      | (451                 | )      | $      | (1,960          | )      |
|                                  |   |   |                           |   |   |                 |   |   |                |   |   |                 |   |   |            |   |
| Per common share data:                |   |   |                           |   |   |                 |   |   |                |   |   |                 |   |   |            |   |
| Net loss                              |   | $      | (0.01                          | )      | $      | (0.01                | )      | $      | (0.01               | )      | $      | (0.01                | )      | $      | (0.04           | )      |
|                                  |   |   |                           |   |   |                 |   |   |                |   |   |                 |   |   |            |   |
| 2009:                                 |   |   |                           |   |   |                 |   |   |                |   |   |                 |   |   |            |   |
| Operating expenses                    |   | $      | 916                            |   | $      | 525                  |   | $      | 504                 |   | $      | 510                  |   | $      | 2,455           |   |
| Operating loss                        |   |   | (916                           | )      |   | (525                 | )      |   | (504                | )      |   | (510                 | )      |   | (2,455          | )      |
| Net loss                              |   | $      | (859                           | )      | $      | (515                 | )      | $      | (491                | )      | $      | (546                 | )      | $      | (2,411          | )      |
|                                  |   |   |                           |   |   |                 |   |   |                |   |   |                 |   |   |            |   |
| Per common share data:                |   |   |                           |   |   |                 |   |   |                |   |   |                 |   |   |            |   |
| Net loss                              |   | $      | (0.02                          | )      | $      | (0.01                | )      | $      | (0.01               | )      | $      | (0.01                | )      | $      | (0.06           | )      |
|                                  |   |   |                           |   |   |                 |   |   |                |   |   |                 |   |   |            |   |
|                                  |   |   |                           |   |   |                 |   |   |                |   |   |                 |   |   |            |   |
|                                  |   |   |                           |   |   |                 |   |   |                |   |   |                 |   |   |            |   |

| ITEM 10.  | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
|----------------|--------------------------------------------------------|

|   Code of Ethics |   |
|-----------------------|--------|

|   ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
|----------------------|------------------------------------------------------------------------------------------------|

|                                          |   | Shares to be issued upon exercise of outstanding options |   |   | Weighted average exercise price of outstanding options |   |   | Shares available for future issuance |   |
|-----------------------------------------------|--------|----------------------------------------------------------|--------|--------|--------------------------------------------------------|--------|--------|--------------------------------------|--------|
|                                          |   |                                                     |   |   |                                                   |   |   |                                 |   |
| Equity Compensation                           |   |                                                     |   |   |                                                   |   |   |                                 |   |
|   Plans approved by stockholders    |   | 836,000                                                  |   | $      | 0.87                                                   |   |   | 4,164,000                            |   |
|                                          |   |                                                     |   |   |                                                   |   |   |                                 |   |
| Equity Compensation                           |   |                                                     |   |   |                                                   |   |   |                                 |   |
|   Plan not approved by stockholders |   | -                                                        |   |   | -                                                      |   |   | 110,000                              |   |
|                                          |   |                                                     |   |   |                                                   |   |   |                                 |   |
| Total                                         |   | 836,000                                                  |   | $      | 0.87                                                   |   |   | 4,274,000                            |   |
|                                          |   |                                                     |   |   |                                                   |   |   |                                 |   |

| ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
|----------|---------------------------------------------------------------------------|

| 1. | Index to Financial Statements: |
|----|--------------------------------|

|  AmBase Corporation and Subsidiaries:                                           | Page  |
|--------------------------------------------------------------------------------------|------------|
|                                                                                 |       |
|   Report of Marcum LLP, Independent Registered Public Accounting Firm | 14         |
|                                                                                 |       |
|   Report of UHY LLP, Independent Registered Public Accounting Firm         | 15         |
|                                                                                 |       |
|   Consolidated Statements of Operations                                    | 16         |
|                                                                                 |       |
|   Consolidated Balance Sheets                                              | 17         |
|                                                                                 |       |
|   Consolidated Statements of Changes in Stockholders’ Equity         | 18         |
|                                                                                 |       |
|   Consolidated Statements of Cash Flows                                         | 19         |
|                                                                                 |       |
|   Notes to Consolidated Financial Statements                               | 20         |
|                                                                                 |       |

|                     3A. | Restated Certificate of Incorporation of AmBase Corporation (as amended through February 12, 1991) (incorporated by reference to Exhibit 3A to the Company’s Annual Report on Form 10-K for the year ended December 31, 1990). |
|------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                     3B. | By-Laws of AmBase Corporation (as amended through March 15, 1996), (incorporated by reference to Exhibit 3B to the Company’s Annual Report on Form 10-K for the year ended December 31, 1995). |
|------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  4. | Rights Agreement dated as of February 10, 1986 between the Company and American Stock Transfer and Trust Co. (as amended March 24, 1989, November 20, 1990, February 12, 1991, October 15, 1993, February 1, 1996 and November 1, 2000, November 9, 2005, and November 10, 2010), (incorporated by reference to Exhibit 4 to the Company’s Annual Report on Form 10-K for the year ended December 31, 1990, the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 1993, the Company’s Annual Report on Form 10-K for the year ended December 31, 1995, the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2000, the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2005, and the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2010, respectively). |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  10.A | 1993 Stock Incentive Plan as amended (incorporated by reference to Exhibit A to the Company’s Proxy Statement for the Annual Meeting of Stockholders held on May 16, 2008). |
|------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  10.B | 1994 Senior Management Incentive Compensation Plan (incorporated by reference to Exhibit A to the Company’s Proxy Statement for the Annual Meeting of Stockholders held on May 27, 1994). |
|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  10.C | AmBase Officers and Key Employees Stock Purchase and Loan Plan (incorporated by reference to Exhibit 10E to the Company’s Annual Report on Form 10-K for the year ended December 31, 1989). |
|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  10.D | Employment Agreement dated as of March 30, 2006 between Richard A. Bianco and the Company, for employment from June 1, 2007 through May 31, 2012, (incorporated by reference to Exhibit 10H to the Company’s Annual Report on Form 10-K for the year ending December 31, 2005), and as amended January 1, 2008, (incorporated by referenced to Exhibit 10E to the Company’s Annual Report on Form 10-K for the year ending December 31, 2007). |
|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  14. | AmBase Corporation - Code of Ethics as adopted by Board of Directors (incorporated by reference to Exhibit 14 to the Company’s Annual Report on Form 10-K for the year ending December 31, 2003). |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  21. | Subsidiaries of the Registrant. |
|-----------|---------------------------------|

|  23.1 | Consent of Marcum LLP, Independent Registered Public Accounting Firm. |
|------------|-----------------------------------------------------------------------|

|  23.2 | Consent of UHY LLP, Independent Registered Public Accounting Firm. |
|------------|--------------------------------------------------------------------|

|  31.1 | Rule 13a-14(a) Certification of Chief Executive Officer Pursuant to Rule 13a-14. |
|------------|----------------------------------------------------------------------------------|

| 31.2 | Rule 13a-14(a) Certification of Chief Financial Officer Pursuant to Rule 13a-14. |
|------|----------------------------------------------------------------------------------|

|  32.1 | Section 1350 Certification of Chief Executive Officer pursuant to Rule 18 U.S.C. Section 1350. |
|------------|------------------------------------------------------------------------------------------------|

|   32.2 | Section 1350 Certification of Chief Financial Officer pursuant to Rule 18 U.S.C. Section 1350. |
|-------------|------------------------------------------------------------------------------------------------|

| COLUMN A                      | COLUMN B           | COLUMN C                            | COLUMN D                                   | COLUMN E                                                       |
|-------------------------------|--------------------|-------------------------------------|--------------------------------------------|----------------------------------------------------------------|
|                          |               |   Initial Cost to Company | Cost Capitalized Subsequent to Acquisition |  Gross Amount at which Carried at the Close of the Period |
|  Description             |  Encumbrances |  Land                          |  Building & Improvements          |  Improvements                                             |  Land | Building & Improvements |  Total |
| Office Building:Greenwich, CT |   $-     |   $554                    |   $1,880                         |   $20                                                |   $554 |   $1,900 |   $2,454 |
| Total……….   | $-                 | $554                                | $1,880                                     | $20                                                            | $554 | $1,900 | $2,454 |

|   |  COLUMN A   |   |   |  COLUMN F           |   |   |  COLUMN G   |   |   |  COLUMN H |   |   |  COLUMN I                                    |   |
|--------|------------------|--------|--------|--------------------------|--------|--------|------------------|--------|--------|----------------|--------|--------|---------------------------------------------------|--------|
|   | Description      |   |   | Accumulated Depreciation |   |   | Date Constructed |   |   | Date Acquired  |   |   | Life on Which Depreciated Latest Income Statement |   |
|   | Office Building: |   |   |                     |   |   |             |   |   |           |   |   |                                              |   |
|   | Greenwich, CT    |   | $      | 485                      |   |   | 1970             |   |   | Apr.-01        |   |   | 39 years                                          |   |
|   |             |   |   |                     |   |   |             |   |   |           |   |   |                                              |   |
|   | Total            |   | $      | 485                      |   |   |             |   |   |           |   |   |                                              |   |
|   |             |   |   |                     |   |   |             |   |   |           |   |   |                                              |   |

|                                                    |   | Year Ended December 31, 2010 |   |   | Year Ended December 31, 2009 |   |   | Year Ended December 31, 2008 |   |
|---------------------------------------------------------|--------|------------------------------|--------|--------|------------------------------|--------|--------|------------------------------|--------|
|                                                    |   |                         |   |   |                         |   |   |                         |   |
| Balance at beginning of year                            | $      | 2,454                        |   | $      | 2,454                        |   | $      | 2,454                        |   |
| Improvements                                            |   | -                            |   |   | -                            |   |   | -                            |   |
| Acquisitions                                            |   | -                            |   |   | -                            |   |   | -                            |   |
| Disposition                                             |   | -                            |   |   | -                            |   |   | -                            |   |
| Balance at end of year                                  | $      | 2,454                        |   | $      | 2,454                        |   | $      | 2,454                        |   |
|                                                    |   |                         |   |   |                         |   |   |                         |   |
| Total cost for federal tax purposes at end of each year | $      | 2,454                        |   | $      | 2,454                        |   | $      | 2,454                        |   |
|                                                    |   |                         |   |   |                         |   |   |                         |   |

| Balance at beginning of year | $      | 436    |   | $      | 385    |   | $      | 334    |   |
|------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Depreciation expense         |   | 49     |   |   | 51     |   |   | 51     |   |
| Dispositions                 |   | -      |   |   | -      |   |   | -      |   |
| Balance at end of year       | $      | 485    |   | $      | 436    |   | $      | 385    |   |
|                         |   |   |   |   |   |   |   |   |   |

|  Annual Meeting of Stockholders The 2011 Annual Meeting is currently scheduled to be held at 9:00 a.m. Eastern Time, on Friday, June 3, 2011, at: Hyatt Regency Hotel1800 East Putnam AvenueGreenwich, CT  06870 |   |  Corporate Headquarters AmBase Corporation100 Putnam Green, 3rd FloorGreenwich, CT  06830-6027(203) 532-2000 |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------|

|   Common Stock Trading AmBase stock is traded through one or more market-makers with quotations made available in the “pink sheets” published by the National Quotation Bureau, Inc. Issue                                  Abbreviation                       Ticker Symbol Common Stock                       AmBase                             ABCP.OB  Transfer Agent and Registrar American Stock Transfer and Trust Company59 Maiden LaneNew York, NY  10038Attention: Shareholder Services(800) 937-5449 or (718) 921-8200 Ext. 6820 |   | Stockholder Inquiries Stockholder inquiries, including requests for the following: (i) change of address; (ii) replacement of lost stock certificates; (iii) Common Stock name registration changes; (iv) Quarterly Reports on Form 10-Q; (v) Annual Reports on Form 10-K; (vi) proxy material; and (vii) information regarding stockholdings, should be directed to: American Stock Transfer and Trust Company59 Maiden LaneNew York, NY  10038Attention: Shareholder Services(800) 937-5449 or (718) 921-8200 Ext. 6820 In addition, the Company’s public reports, including Quarterly Reports on Form 10-Q, Annual Reports on Form 10-K and Proxy Statements, can be obtained through the Securities and Exchange Commission EDGAR Database over the World Wide Web at www.sec.gov. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |
| Independent Registered Public Accountants Marcum LLPMaritime Center555 Long Wharf DriveNew Haven, CT  06511                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Number of Stockholders As of February 28, 2011, there wereapproximately 13,700 stockholders.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |